Taipei, March 10, 2010 (CENS)--Chunghwa Telecom Co., Ltd., currently Taiwan`s No.1 telecom carrier, this year will budge around NT$3 billion (US$93.7 million at US$1:NT$32) for routers, severs, and switchers in preparation for its cloud-computing service, according to an executive of the company`s Internet service provider (ISP) subsidiary Hinet.

Hinet`s vice president, B.H. Liu, said his company has begun approaching the island`s leading server suppliers including Quanta Computer, Delta Electronics, Inventec, and Hon Hai Precision Industry as well as contract manufacturers of international storage-device suppliers over procurement deals.

The company plans to buy over 70% of the equipment from Taiwanese manufacturers. To prepare for the service, the company plans 20% more budget this year than last year.

Chunghwa will replace the operating servers at its offices around the island with cloud-computing servers and has designated Hinet to offer cloud-computing leasing service.

Although Hinet`s executives conceded that it will takes three to five years before cloud-computing market takes off, Chunghwa needs to put all gears to cash in on the future market demand.

The equipment will be installed at an Internet data center (IDC) building that Chunghwa is planning to construct at a cost of NT$13 billion (US$406 million). The building is slated to start operation in 2012.

Hinet`s executives pointed out that the ISP`s cloud-computing leasing program has captured imagination of online gaming providers and content providers.

(by Ken Liu)